Still There, Foreclosed No Longer-Nonprofits help occupants buy back homes

[babylonsister]

This is terrific! We need more of this kind of cooperation.


Still There, Foreclosed No Longer
Nonprofits help occupants buy back homes

by Jenifer B. McKim


Thomas Quinn did something that most people who lose their homes to foreclosure can only dream about: He bought back his family's Hyde Park house.

Quinn, 48, a father of two teenage daughters, was forced to give up the deed to the 1920s bungalow last year after his wife died of cancer and he could no longer afford the payments on their subprime loan. But he refused to leave the property, outraged that his lender wouldn't rework the mortgage. And then, with the help of a local nonprofit, the fire pump salesman was able to repurchase his home and secure an affordable 30-year, fixed-rate mortgage nine months after the foreclosure.

"I'm a happy homeowner again with a payment I can live with," he said. "It is saving me over $1,000 a month."

Quinn is one of a small but growing group of former owners who are not only staying in foreclosed homes but are buying them back, with the help of nonprofit groups and housing advocates. And in some cases, they are getting their homes at significant discount the second time around, because real estate values have plunged.

"We are in the process of helping a lot of people buy back their homes," said Zoe K. Cronin, a housing attorney for Greater Boston Legal Services. "There is not likely going to be another buyer. If there is someone willing to buy it back at a real value, that's probably the best option" for lenders, she said.

Boston Community Capital, a 25-year-old agency with a mission to help create healthy communities, is at the forefront of the effort, with about 30 borrowers - tenants and former homeowners - already in the process of purchasing their homes. In Quinn's case, the nonprofit bought his house from Wells Fargo Home Mortgage in February and weeks later sold it back to him for $198,750 - about what he owed the bank.

more...

http://www.commondreams.org/headline/2009/05/11-1

[notadmblnd]

1. I'm seeng a lot of investors pouncing on these bank owned homes

it pisses me off cause they're in it to make a quick buck and are just going to rent them out. Instead families could be making real homes out of them.

[louis-t]

2. I am pushing the HUD homes to 'owner-occupied ' buyers

HUD gives them first crack over investors.

[notadmblnd]

3. I just placed an offer on a hud home.

it's a recent build (98). They were asking 66,000 I offered 55 (every penny I have saved). I should know tonight before it goes to the investors at 7. Prior to making an offer on this hud home, I was looking at bank owned.

[babylonsister]

4. Good luck, notadmblnd!

I hope you get it! :thumbsup:

[louis-t]

5. HUD is path of least resistance right now.

I'd rather deal with them because you know exactly what to expect. If your offer goes through, have your Realtor attach an inspection contingency to the sales contract by checking the box marked "other addendums attached" on the contract, then fill out a seperate inspection contingency form and send it in with the contract. That way if your inspection comes up bad, you can get your $1,000 deposit back. Otherwise, you lose it.

[notadmblnd]

7. Well I found out at 5 someone else offered more

I didn't like the house anyway. I've got another one on my list (bank owned). I'm waiting for the Realtor to call me now.

[louis-t]

8. Remember to look at the big picture.

I'm seeing houses at 25% of their value a few years ago, and people still want to lowball. Some might require full price or more to get them, but they're still great deals. Good luck.

[Fireweed247]

6. beautiful

:applause: